Circular No. 03/2006/TT-NHNN: On deposit insurance

The State Bank Governor issued this Circular on April 25, guiding a number of contents of Government Decree No. 89/1999/ND-CP of September 1, 1999, on deposit insurance, and Decree No. 109/2005/ND-CP of August 24, 2005, amending Decree No. 89/1999/ND-CP.

According to the Circular, to be-insured deposits are Vietnam dong sums deposited at insured organizations by individuals, households, cooperative groups, private enterprises or partnerships, excluding:

- Deposits of shareholders owning over 10% of the charter capital or holding over 10% of the voting share capital of such insured organizations;

- Deposits of members of Managing Boards or Control Boards, general directors (directors), or deputy general directors (deputy directors) of such insured organizations;

- Deposits used as security for the performance of depositors obligations; and,

- Deposits used for the purchase of non-bearer valuable papers issued by insured organizations.

The Circular also provides the issuance and revocation of deposit insurance certificates; deposit insurance premiums; inspection and supervision of insured organizations, and handling measures; Vietnam Deposit Insurances support for insured organizations; payment to insured depositors; and information exchange, inspection and supervision coordination between Vietnam Deposit Insurance and the State Bank of Vietnam.

This Circular takes effect as from May 18 and replaces Circular No. 03/2000/TT-NHNN5 of March 16, 2000, Decision No. 1077/2001/QD-NHNN of August 27, 2001, and Circular No. 12/2003/TT-NHNN of December 23, 2003.

(Source: Vietnam Law)